Boca Raton attorney pleads not guilty to fraud charges

WEST PALM BEACH - — They came to the courthouse to see their former attorney for the first time in months. He shuffled into view with his legs shackled, his arms cuffed and his eyes avoiding theirs.

People who say they were victimized by Timothy McCabe were present in West Palm Beach federal court Monday to get a look at the Boca Raton lawyer they say vanished along with their money. He disappeared for more than two months earlier this year, re-emerging to turn himself in after the FBI announced he was a wanted man.

Among the courtroom spectators was a woman who said she once considered McCabe a dear friend, having entrusted him with more than $1 million. In the row behind her was a 70-year-old retiree who said she's out about $76,000.

"I want him to know he hurt people," said Nancy Buchanan, the retiree. "I want him to see my face in court."

She was there to watch McCabe's first scheduled court appearance as the longtime real estate attorney pleaded not guilty to five fraud charges. Federal prosecutors filed the charges Friday, accusing McCabe of pocketing more than $3.6 million in 20 separate home closings rather than properly disbursing the money.

The mortgage transactions happened from Aug. 30 to April 2, with McCabe using the funds for "his personal and business expenses," according to federal prosecutors.

If convicted of just one of the fraud charges, the 55-year-old father of three young girls could face up to 30 years in prison. He currently is in jail without bond.

McCabe, dressed in a blue jail jumpsuit, avoided looking at spectators, staring straight ahead and at one point pressing his hands together in front of his face.

He waived his right to have a grand jury decide whether to indict him, opting instead to allow federal prosecutors to choose the criminal charges brought against him. Such a decision is usually a sign that a plea deal is in the works or that the defendant hopes for one.

Robert Gershman, McCabe's attorney, has declined to discuss whether his client may be taking a deal or is cooperating with federal authorities. Gershman also isn't talking about where McCabe was from April 2 until he reappeared June 20 to turn himself in at the FBI's West Palm Beach office.

"He's trying to stay strong," Gershman said.

Though he is charged with taking more than $3.6 million, auditors who have gone through the books of McCabe's Lake Worth law firm, McCabe & Samiljan, estimated the total losses could reach $8 million, according to court records.

McCabe disappeared in dramatic fashion. His wife reported to authorities that she saw him packing his suitcase on April 2, believing he was heading off on a business trip to Tampa. Later that day, she and McCabe's law partner received emails from McCabe's account apologizing for "a series of very bad business decisions" and vowing to "make things right."

"I made people millions and none for us," the email to McCabe's wife read. "I am trying to rectify it. If I cannot then I am going to set my affairs in order and finish a few things."

McCabe had a number of business ventures including a company selling patented shoes for karate and kickboxing competitions and another that promised to help people get their mortgages modified to avoid foreclosure. A recent lawsuit also accused McCabe of pitching a fraudulent deal involving the currency of Iraq.

It's unclear how many people are claiming to be out money to McCabe. Twenty-nine complaints against him have been filed with the Florida Bar, as well as four lawsuits in state and federal courts.

Marie Pupke, a former McCabe client, said she considered him like a brother, putting more than $1 million in one of his escrow accounts. She said she remains mystified what came over the mild-mannered family man she knew.

"I loved him. I trusted him," Pupke said. "Seeing him today, I felt sad and disgusted at the same time."

Like all of McCabe's aggrieved clients, she wants to know: Where's the money?

Buchanan, who had McCabe handle the estates of her parents and a friend, said the FBI told her it has recovered little of the missing funds.

"It was easy money," the Lake Worth woman said. "Whatever was there he just took it."